KWAP allocates US$1.28bil for private capital investment via Dana Pemacu

• Targeting key economic sectors and impact-related themes under Ekonomi MADANI
• 50% will be Shariah-focused, unlocking Islamic equity capital, create greater impact

Malaysian Anwar Ibrahim announced today that Kumpulan Wang Persaraan (Diperbadankan) (KWAP) will invest US$640 million (RM3 billion) in Shariah compliant investments, making up 50% of the total Dana Pemacu capital commitment of US$1.28 billion (RM6 billion). Anwar was speaking at the Global Forum on Islamic Economics and Finance in Kuala Lumpur.

Dana Pemacu will be a Malaysia-focused private equity investment strategy, targeting key economic sectors including food security, education, silver economy and healthcare, energy transition, digital economy, financial inclusion, and other impact-related critical themes under the Ekonomi MADANI framework.

Dana Pemacu will be executed through Separately Managed Account (SMA) funds in partnership between local talent and top international investment managers across three different asset classes: Private Equity, Infrastructure, and Real Estate with four funds in each asset class for a total of 12 funds to be created.

KWAP said all 12 funds will be Malaysia-focused as the majority of the investments will be in Malaysia. However the funds would also be allowed to look outside Malaysia for investment opportunities.

“The launch of Dana Pemacu by KWAP is in line with the broader reform by the Government to optimise GLIC institutional funds to spur investments into high growth Malaysian companies, contributing to initiatives which Raise the Ceiling under the Economy MADANI framework. Dana Pemacu’s approach of partnership with domestic and international investment managers will help strengthen Malaysia’s private markets ecosystem,” said Minister of Finance II Amir Hamzah Azizan, who officiated the launch of Dana Pemacu.

The RM6 billion capital commitment will be invested via conventional and Shariah- compliant SMAs, with 50% to be Shariah-focused, unlocking the potential of Islamic equity capital in creating a greater impact in Shariah-compliant investment and enhancing the overall private markets, as well as offering unique opportunities for ethical and socially responsible investing.

Nik Amlizan Mohamed, Chief Executive Officer of KWAP said, “We believe that Dana Pemacu is instrumental for the growth and progress of the nation. Our plan is to deploy this investment through the creation of partnership models between local talent and international fund managers, which will serve to catalyse the private market investment ecosystem in Malaysia. Furthermore, this initiative will bring global best practices and expertise to the local market as well as driving knowledge-transfer and industry network.”